Fintech firm PayMate India is set to refile its draft IPO papers with SEBI after securing final authorization from the RBI to operate as a payment aggregator.
PayMate India, a fintech firm, announced its plans to refile its draft initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI). This decision follows the company's receipt of final authorization from the Reserve Bank of India (RBI) to function as an online payment aggregator (PA). The company had previously received in-principle approval from the RBI in December.
SEBI had requested PayMate to refile its IPO documents with updated information, potentially causing a delay in the company's initial share sale. Sources indicate that the update pertains to the final payment aggregator authorization and any other relevant material changes.
In a statement, PayMate India confirmed its intention to submit the mandatory System Audit Report (SAR) by the first or second week of February, subsequent to receiving the in-principle approval from the RBI. The SAR is a crucial component of the standard operating procedure for obtaining final PA authorization from the RBI.
The company expressed confidence in a swift response from the RBI, paving the way for the refiling of the Draft Red Herring Prospectus (DRHP) with the necessary updates and the RBI's final approval. PayMate India had initially filed its DRHP for a ₹1,500 crore IPO with SEBI in May 2022.
The proposed IPO includes a fresh issue of equity shares worth ₹1,125 crore, along with an Offer-For-Sale (OFS) of ₹375 crore by promoters, investors, and other shareholders. The promoters, Ajay Adiseshan and Vishvanathan Subramanian, along with investors such as Lightbox Ventures I, Mayfield FVCI Ltd, RSP India Fund LLC, and IPO Wealth Holdings, intend to sell shares through the OFS.
Additionally, certain existing shareholders are planning to offload their shares via this route. Currently, the promoter and promoter group collectively hold 66.70% of the company's stake, with the remaining portion held by public shareholders.
According to a recent update on SEBI's website, the regulator returned PayMate's DRHP on January 17, 2023, advising the company to refile it with the relevant updates and revisions.
PayMate operates as a multi-payment category platform, facilitating vendor payments, statutory payments, and utility payments. Its integrated B2B payment stack aims to provide customers with a seamless payment experience. The platform also enables consumers, vendors, suppliers, buyers, dealers, and distributors to utilize commercial credit cards for statutory payments related to direct taxes, GST, and utility bills.
Visa maintains a partnership with PayMate and holds a 2.94% stake in the company's fully diluted paid-up equity share capital.
Earlier in January, SEBI returned the draft IPO papers of Lava International, a domestic mobile manufacturer, and Oravel Stays Ltd (OYO), requesting them to refile the documents with updated information.
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